Tilray Brands (TLRY) Stocks Soar on Rescheduling Optimism and Jefferies Upgrade

Tilray Brands Inc. shares jumped sharply on Monday, August 25, 2025, amid growing optimism over U.S. cannabis rescheduling and a bullish analyst upgrade.

Shares of TLRY rose 14.3% to $1.31 in early trading, reversing a recent downtrend as investors reacted to a positive outlook from Jefferies and mounting bipartisan support for moving marijuana to Schedule III of the Controlled Substances Act.

Jefferies analyst Kaumil Gajrawala maintained a Buy rating on TLRY and raised his price target from $1.50 to $2.00, citing Tilray’s “brand strength, scale, and balance sheet” advantage as the industry braces for regulatory change. That upgrade helped propel intraday gains alongside reports that five bipartisan congressional staffers expect President Trump to finalize cannabis rescheduling before year-end, unlocking tax write-offs and easing banking restrictions under the SAFER Banking Act.

The anticipated shift from Schedule I to Schedule III would enable cannabis companies to deduct normal operating expenses under Section 280E, significantly improving profitability and access to capital. Though full legalization remains uncertain, the rescheduling move is widely viewed as a breakthrough on cannabis reform.

Monday’s rally underscores the market’s renewed focus on regulatory catalysts. With TLRY now trading near its highest levels in months, investors will watch closely for formal announcements from the Drug Enforcement Administration and progress on cannabis banking legislation to assess whether this momentum can be sustained.